Please take the 2 minutes to register an account at the Chicago Tribune. Its easy, but more importantly, FREE OF CHARGE. This is a very interesting article on the cap. Yes, it deals with the Bulls, but it talks about the other teams as well, and explains a bit to how the luxury tax works, for those interested. <div class="quote_poster">Quote:</div><div class="quote_post"> Last season players' salaries (averaging $4.55 million) and benefits totaled $1.74 billion, which came to more than 65 percent of income. As a result, the luxury tax went into effect. It taxes teams $1 on every $1 spent above the luxury-tax level, which was a $52.8 million payroll last season. Also because of the salary level, the 10 percent of the players' salaries held in escrow as part of the collective-bargaining agreement was redistributed to teams last season. Seven teams paid a total of almost $100 million in "taxes," which was distributed to teams that didn't exceed the luxury-tax threshold of $52.8 million. The result this season is that several of those tax-paying teams, some of which didn't even make the playoffs, are trying to cut salaries after seeing their taxes distributed to competitors. Here's a look at the biggest losers in the NBA's escrow and tax system from last season: Trail Blazers $45,226,000 Knicks $17,626,000 Mavericks $11,754,000 Kings $10,631,000 76ers $6,013,000 Lakers $3,004,000 Grizzlies $808,000 Also paying taxes because of their high payrolls were the Timberwolves, Nets, Heat, Bucks, Hawks, Raptors, Suns, Pacers and Spurs. But their payments were offset by league distributions, and they netted receipts from the escrow and tax system. The big winners were teams not paying taxes and getting receipts. Thirteen teams received distributions, mostly coming from other teams, of $14,435,000 per team. They were the Bulls, Celtics, SuperSonics, Magic, Rockets, Cavaliers, Jazz, Nuggets, Pistons, Warriors, Wizards, Hornets and Clippers. As salaries are reduced, the likelihood of a luxury tax decreases, meaning salaries throughout the NBA are likely to drag. As a result, teams will find it difficult to justify big maximum contracts for young players. </div> http://chicagosports.chicagotribune.com/sp...bulls-headlines Please take some time to read to this.
Ya know I always want to learn about the CBA and how the salary cap works, but I never get around to it. I think I actually have gotten around to it a couple times, but I still came away not understanding a thing about it. Thanks for the article, but there were some terms I still don't get. Like the 10% of players salary in escrow and the whole escrow and tax system in the NBA. Is there anywhere that I can learn more about this? I know there is an FAQ site that I posted here before about the CBA, but I lost track of that site.
Ok I found a site or two that can maybe clear up some salary cap issues people have. The site I said I lost track to earlier, well I found it. Site 1: http://members.cox.net/lmcoon/salarycap.htm Site 2: http://www.uncg.edu/bae/people/rosenbaum/nba.html I haven't navigated the second site yet, but from looking at it it looks like it can be very helpful.
